Utah Law Exam (Stringham)
A person facing foreclosure could file a claim of exemption under the homestead act. If, after the bank was paid off, there was remaining equity, which debt below would be paid before the owner got what was left of the equity? (a) Back child support payments (b) Unpaid orthodontist bills (c) Credit card debts (d) Past due car payments
Back child support payments
Which of the following is a requirement for a licensed person to be a commissioner? (a) Be an active licensee for five years. (b) Have a sales agent license for three years. (c) Have a broker's license for three years. (d) Be a principal broker for three years.
Be an active licensee for five years Explanation: Four of the commissioners are licensees and can have either a sales agent or broker license—for five years previous; the other commissioner is at-large, meaning not a licensee in real estate.
The Director is responsible for preparing a _______________ for the fiscal year. (a) Budget (b) Banquet (c) Company party
Budget
A double contract would most likely be created between a: (a) buyer and seller (b) buyer and banker (c) broker and seller (d) broker and sales agent
Buyer and seller
A copy of the Closing Disclosure should go to: (a) Seller and broker (b) Buyer and broker (c) Buyer and seller (d) Buyer, seller and broker(s)
Buyer, seller and broker(s)
THE UTAH REAL ESTATE RECOVERY FUND ACT The secondary purpose of the Utah Real Estate Recovery Fund Act is for all of the following EXCEPT: (a) Education (b) Discipline (c) Research
Discipline
The Timeshare and Camp Resort Act is administered by the: (a) Division of Real Estate (b) State of Utah
Division of Real Estate
You list a home that has an old well on it. The seller knows nothing about it. It is not being used now, but the seller doesn't know who has the water rights. Where would you check to find out. (a) Division of Water Rights. (b) State Water Commissioner. (c) Utah Real Estate Division, Water Rights Section. (d) Water Usage & Appropriations Commission
Division of Water Rights
A broker in Vernal lists a property in Roosevelt under an exclusive right to sell listing. The selling broker does not sell through the listing broker. This could create: (a) Dual agency (b) Double contract (c) Dual disposition (d) Double commission
Double commission Explanation: Dual (limited) agency is representing both parties. It is legal if the correct documentation is used. Double contracts means two contracts for one transaction and is illegal. Dual disposition . . . Your guess is as good as mine!
In order to receive payment from the Real Estate Recovery Fund, a damaged citizen must: (a) apply to the State Treasury and the Division. (b) file suit and obtain a court judgment against a licensee. (c) file an irrevocable consent with the Commission. (d) appeal to the Attorney General and interplead.
File suit and obtain a court judgment against a licensee
If an agent received earnest money in the following amounts, $500 cash, $500 personal check, the agent would be responsible for: (a) $500 earnest money (b) $600 earnest money (c) $750 earnest money (d) $1,000 earnest money
$1,000 earnest money
With regards to the Utah Real Estate Recovery Fund Act: At the beginning of the fiscal year, the fund must have a balance of at least $____________. (a) $1,000 (b) $10,000 (c) $50,000 (d) $100,000
$100,000
The maximum amount that would be paid from the Utah Recovery Fund for a single transaction of a dishonest licensee is: (a) $15,000 (b) $5,000 (c) $50,000 (d) $2,000
$15,000
With regards to the Utah Real Estate Recovery Fund Act: For a single transaction, no more than $___________ will be paid. (a) $20,000 (b) $15,000 (c) $50,000 (d) $1,000
$15,000
If a person perfected his/her claim under the Utah Exemption Act, the maximum protected amount a single person could get would be: (a) $10,000 (b) $20,000 (c) $5,000 d) $40,000
$20,000
ccording to the Utah Exemption Act (The Homestead Act): If a man had three dependent children, plus his father and mother were living with him, he would be allowed $___________ as an exemption. (a) $1,000 (b) $5,000 (c) $10,000 (d) $20,000
$20,000
With regards to the Utah Real Estate Recovery Fund Act: For one licensee, the division will not pay more than a total of $_______________. (a) $1,000 (b) $10,000 (c) $50,000 (d) $100,000
$50,000
If a seller agrees through informed consent to pay two commissions (double commission), that is: (a) Legal (b) Illegal
Legal
When the agent represents both buyer and seller (dual/limited agency), that is: (a) Legal (b) Illegal
Legal
Which of the following does not need to satisfy the 120 hour education requirement? (a) CPA (b) Ph.D. degree (c) Licensed attorney (d) Advanced Finance Degree
Licensed attorney
Both forms of the license are the responsibility of the: (a) Principal broker (b) Licensee
Licensee
One purpose of the Marketable Record Title Act is to extinguish _________ and _______ that are old and inactive. (a) Liens, encumbrances (b) Titles, liens (c) Encumbrances, titles
Liens, encumbrances
All of the following are State Approved Forms EXCEPT: (a) Real Estate Purchase Contract (b) Listing Contract (c) Addendum (d) Real Estate Purchase Contract for Residential Construction
Listing Contract
Records of branch office transactions are to be kept in the _____________ office or in the _________________ as appropriate. (a) Main, branch (b) Branch office only (c) Main, storage
Main, branch
If a broker or sales agent buys a property for him or herself, he/she: (a) can act as any other buyer would act. (b) must engage a third party as an agent. (c) must give up the commission in the transaction. (d) must disclose that he/she is a licensed real estate broker or sales agent.
Must disclose that he/she is a licensed real estate broker or sales agent. Explanation: This is just the way it is, and the disclosure must be made in writing, whether the licensee is active or inactive.
In the following sales situations, which person is required to have a real estate license? (a) An employee of the phone company buying property for the company. (b) L, who is signing settlement papers under a power of attorney. (c) An attorney selling a residence as administrator of an estate. (d) N is writing and presenting an offer for a neighbor.
N is writing and presenting an offer for a neighbor.
A sales agent who offers a guarantee that if the listing does not sell within six months the agent will buy the listing, must also: (a) A licensee is convicted of a criminal offense. (b) Provide a bond to back the guarantee. (c) Provide complete written details of the guarantee before the property is listed. (d) Notify the Division of Real Estate in advance of the terms of the guarantee.
Provide complete written details of the guarantee before the property is listed
THE UTAH REAL ESTATE RECOVERY FUND ACT The primary purpose of the Utah Real Estate Recovery Fund Act is to protect the: (a) Public (b) Licensee
Public
Where are the water right records stored? (a) Real Estate Division (b) County Recorder's Office (c) State Engineer's Office (d) Water Commissioner's Office
State Engineer's Office Explanation: the State Engineer's Office is the office of record for water rights which also regulates the Division of Water Rights.
2. When someone is guilty of practicing real estate without a license, they will be disciplined by what entity? (a) The commission (b) The county attorney (c) The Director of the R. E. Division (d) The board of REALTORS
The county attorney Explanation: This will be done by the county attorney in the county where the property was located.
When a dispute concerning a commission arises between a broker and a sales agent, the complaint should be handled by which of the following? (a) the Attorney General's office. (b) the Utah Department of Commerce. (c) the courts. (d) the Utah Real Estate Division.
The courts
Who can legally pay a commission to a licensed real estate salesagent? (a) the cooperating broker (b) the employing broker (c) a buyer (d) a seller
The employing broker
Licenses are renewed using the Real Estate License Management System on line. How long must you keep paper proof of completion of your CE requirement? (a) They must be retained for three years after the date of the class. (b) They must be retained until your next license renewal date. (c) Once you've confirmed your class has been banked online, you can shred the completion certificate. (d) No paper record is required
They must be retained for three years after the date of the class
Which of the following options would NOT satisfy the points requirement for a broker applicant to get their license? (a) A combination of 45 points from sales and 15 points from property management. (b) A combination of 45 points from real estate and 15 points from optional allowed activities. (c) 60 points for property management while employed by the owner. (d) 60 points that come from selling properties.
60 points for property management while employed by the owner.
Real estate license law is contained in the Utah Code (UCA) Title ____Chapter ____. (a) 60-5 (b) 61- 2f (c) 60-5
61- 2f
According to the REPC, the earnest money must be deposited in accordance with State law after: (a) The agent receives it (b) Acceptance (c) It is turned in to the brokerage
Acceptance
Which of the following State Approved Forms does one use to make a change to an accepted offer to purchase. (a) Change/Extension form (b) Replacement contract. (c) Codicil (d) Addendum
Addendum
Z is hired by owner X to manage a large apartment complex for X. Which of the following is NOT specifically an activity related to property management? (a) Advertising for buyers for the property. (b) Procuring prospective lessees. (c) Arranging for and paying for maintenance. (d) Negotiating agreements on behalf of the lessor.
Advertising for buyers for the property
A criminal violation of any kind must be disclosed when applying for a real estate license. Which of the following statements most accurately describes the length of time a person must wait after conviction of a crime. (a) Three years for fraud, but no license allowed if it was a felony (b) Three years for fraud and five years in the case of a felony (c) Five years for fraud and 10 years for a felony (d) Any criminal conviction could prevent a person from ever being able to get a real estate license
Three years for fraud and five years in the case of a felony
J wanted to get a real estate license, but was a little concerned because of a past instance of getting in trouble with the law. If J had actually been convicted of the offense, how long would the wait be to be able to be licensed? (a) Three years for misdemeanor, but no license allowed if it was a felony (b) Five years for misdemeanor and 10 years for a felony (c) J would never be able to get a real estate license (d) Three years for misdemeanor and five years in the case of a felony
Three years for misdemeanor and five years in the case of a felony
Proof of completion of continuing education must be kept for how long? (a) Five years from the date of the class (b) Four years from the date of the class (c) Three years from the date of the class (d) Two years from the date of the class
Three years from the date of the class
Candidates obtaining a non-resident broker license who choose to be principal brokers must establish a real estate ______________ in Utah. (a) Trust account (b) Office (c) Operating account
Trust account
To become an active principal broker, the candidate must open a real estate ___________, legally obtain a company name, and get the business going. (a) Trust account (b) Agency (c) Bank account
Trust account
Under what circumstances could a real estate broker receive a referral fee from the dealer who sells a manufactured house? (a) It is not legal for the broker to receive a referral fee. (b) When the fee is disclosed to the buyer. (c) When the fee is paid directly to the sales agent. (d) When there's a written agreement between the broker and the dealer.
When the fee is disclosed to the buyer Explanation: As long as it is disclosed to the purchaser, this is an acceptable practice. It must be paid to the broker, and from the broker to the agent (if applicable).
A "For Sale" sign can legally be placed on a property by a real estate licensee under which of the following circumstances? (a) Only if requested to do so by the seller. (b) With permission of the owner. (c) When taking the listing. (d) If the brokerage is in the same county as the property for sale.
With permission of the owner.
The priority of a mechanic's lien in relation to other liens is established by the day: (a) Work begins (b) The lien was perfected
Work begins
If a sale fails, the broker is entitled to a portion of the earnest money only with _________ of the buyer and seller. (a) Oral consent (b) Written consent (c) Oral consent
Written consent
A licensee cannot advertise a property for less than the listed price without the: (a) Written consent of the owner (b) Oral consent of the owner (c) Written consent of the broker (d) Oral consent of the broker
Written consent of the owner
Sales agent Q is working with Company X who is going to buy a large parcel of land and subsequently subdivide it and sell the individual smaller parcels. Q should inform Company X (a) They will have to register with the R. E. Division under the Land Sales Practices Act. (b) If they sell lots only, with no houses, there is no need to go through the R. E. Division. (c) X should inquire through the R. E. Division to determine if they need to register under the Land Sales Practices Act. (d) Q could sell the lots for X if Q first registers with the R. E. Division.
X should inquire through the R. E. Division to determine if they need to register under the Land Sales Practices Act. Explanation: Most subdivisions will be exempt from this Act, but those that are not have very specific requirements to fulfill. Developers should either register with or have a waiver from the R. E. Division.
The Real Estate Commission can put the licensee on probation (a) True (b) False
True
The Real Estate Commission can revoke a license. (a) True (b) False
True
The Utah Uniform Land Sales Practices Act pertains primarily to subdivisions. (a) True (b) False
True
With regards to the complaint process, how much time is given to respond to a complaint? (a) 3 days (b) 7 days (c) 30 days (d) 14 days
30 days
The statutory period that must pass before the Marketable Record Title Act becomes effective is _______ years. (a) 40 (b) 7 (c) 20
40
An acre foot of water contains ____________ cubic feet. (a) 43,560 (b) 5,280
43,560
How many counties does the Commission represent? (a) 1 (b) 3 (c) 5 (d) 7 (e) 10
5
With regards to the Utah Real Estate Recovery Fund Act: When a license has been revoked, the licensee must wait _____ years to reapply. (a) 3 (b) 5 (c) 7 (d) 10
5
In the real estate trust account, the broker can deposit no more than $________ of his/her own money. (a) 1 (b) 100 (c) 200 (d) 500
500
A separate property management trust account must be opened if servicing more than ____ accounts. (a) 1 (b) 2 (c) 4 (d) 6
6
The law governing the distribution of water in Utah is prior appropriation, sometimes called statutory appropriation. (a) True (b) False
True
An inactive licensee must obtain ____ hours of continuing education each two years. (a) 0 (b) 12 (c) 18 (d) 24
0
The Real Estate Trust Account can draw interest not to exceed ____% (a) 0 (b) 2 (c) 5 (d) 15
0
A licensee must notify the Division of changes, such as address, name, etc. in writing within _______ days. (a) 3 (b) 5 (c) 10 (d) 15
10
When a principal broker has an office in a model home, how many months can it be used before a branch office must be established. (a) 6 (b) 9 (c) 3 (d) 12
12
If the license is not renewed in the ____ month period after it expires, it lapses and the licensee must _____________. (a) 3, pay a fine (b) 6, pay a fine (c) 6, start over (d) 12, start over
12, start over
When a dispute between seller and buyer arises, the principal broker has _____ days to notify the parties involved in the dispute. (a) 3 (b) 10 (c) 15
15
To maintain a license, each licensee must complete _______ hours of continuing education every _____ years. The required Core Course is _____ hours of the total. (a) 6, 2, 6 (b) 12, 2, 6 (c) 12, 2, 3 (d) 18, 2, 9
18, 2, 9
In Utah, what is the statutory period for obtaining a prescriptive easement? (a) 20 years (b) 40 years (c) 7 years (d) 5 years
20 years
According to Utah Law, the earnest money must be deposited within _______ business/banking/working days. (a) 1 (b) 3 (c) 5
3
According to state law, an earnest money deposit must be placed in the Real Estate Trust Account within: (a) 3 banking days after acceptance or as agreed to in writing (b) 7 business days (c) 5 working days after acceptance of the contract (d) 5 calendar days
3 banking days after acceptance or as agreed to in writing
How long must a broker retain rejected offers? (a) 5 years following the year of the transaction (b) 3 years following the year of the transaction. (c) Rejected offers never have to be retained in the files. (d) 90 days following date of the transaction
3 years following the year of the transaction
All of the following can perform real estate activities without having a real estate license EXCEPT: (a) Persons buying or selling property for themselves (b) A lawyer, because he/she has a license to practice law (c) An attorney-in-fact in isolated situations (d) A trustee auctioning property at a Trustee's Sale (e) A sheriff selling property at a Sheriff's Sale
A lawyer, because he/she has a license to practice law
If a person living in a condominium project did not pay their homeowner fee, what might the consequences be? (a) A lien would be placed against the property. (b) They will forfeit their ownership. (c) A condemnation action would be initiated. (d) It would become fee simple defeasible.
A lien would be placed against the property
If a contractor files a mechanic's lien for an amount greater than the debt owed, he is guilty of: (a) statutory fraud. (b) violating the rules and regulations of the Department of Real Estate. (c) a misdemeanor. (d) a felony involving moral turpitude.
A misdemeanor
A person who owned a condominium might own any of the properties described below EXCEPT: (a) A medical/dental building (b) A nine-hole golf course (c) A unit in a light industrial complex (d) A single family dwelling
A nine-hole golf course
Which of the following is NOT required for an unlicensed auctioneer to conduct an auction of real property? (a) A principal broker is present at the auction. (b) The Real Estate Purchase Agreement is used and filled out by a licensee. (c) The earnest money is deposited in the broker's trust account. (d) A principal broker has reviewed and initialed all documents prior to the auction.
A principal broker has reviewed and initialed all documents prior to the auction Explanation: The broker looking over documents BEFORE the transaction happens doesn't help at all. All the other three answers are required if the auctioneer does not have a license.
In the relationship between the lender and the real estate licensee, what is NOT allowed? (a) The licensee can arrange a meeting for the lender to propose a financing plan to the client. (b) A referral fee may be paid, not to exceed $50. (c) The lender may send a copy of the loan estimate to the agent. (d) The licensee may refer clients to specific lenders.
A referral fee may be paid, not to exceed $50
All of the following are State Approved Forms EXCEPT: (a) Agency Disclosure Form (b) Uniform Real Estate Contract (c) All Inclusive Trust Deed (d) All Inclusive Promissory Note
Agency Disclosure Form
48. A person owns what in a condo: (a) The entire property (b) Air space (c) The outside structure (d) The building
Air space Explanation: The classic definition of a condo is ownership of one's own air space and tenancy in common ownership of the common area.
In a condominium subdivision, who owns the supporting structure of each individual unit? (a) It is owned by the developer. (b) All owners own it in joint tenancy (c) The owner of each individual unit. (d) All tenants own it as tenants in common.
All tenants own it as tenants in common
Licensees must disclose their interest in a transaction if they own more than this percent of stock in a corporation: (a) 25% (b) Any (c) 5% (d) 10%
Any Explanation: There is no minimum amount given in the Rule. If there is any interest at all, it must be disclosed in writing.
Which of the following can a licensee NOT legally fill out? (a) All real estate forms approved by the Real Estate Division and the Attorney General's Office (b) All forms prepared by legal counsel of the buyer or seller or any legal counsel if there isn't an approved form for the particular transaction. (c) Documents associated with closing a real estate transaction, but only by a principal or associate broker. (d) Any form created by the principal broker under the direction of the buyer or seller. (e) Forms prepared by a business entity whose business it is to prepare and print legal forms.
Any form created by the principal broker under the direction of the buyer or seller.
Regarding the complaint process, who can complain? (a) The buyer (b) The seller (c) The broker (d) Anyone
Anyone
Which of the following is NOT one of the ways a principal broker is allowed to disburse money from the trust account? (a) As directed in the contract (b) As directed by the buyer and seller (c) As directed by the court (d) As directed by the lender
As directed by the lender
Regarding the Utah Real Estate Recovery Fund Act: The suing party must also show that the licensee has no _____________ to satisfy the judgment. (a) Assets (b) Money (c) Reason
Assets
The Branch Manager must be a(n): (a) Associate Broker (b) Principal Broker
Associate Broker
Where should records of transactions that take place in a branch office be kept? (a) At the branch, in a storage file. (b) At the main office or, where applicable, at the branch. (c) At an independent location, where they will be safe from fire. (d) At the main office of the company.
At the main office or, where applicable, at the branch
The purpose of the Utah Exemption Act (The Homestead Act) is to protect only a portion of equity money. (a) True (b) False
True
57. Which item on the list is NOT a cause for an agent to lose his/her license? (a) Failing to furnish copies to the parties executing documents (b) A flagrant course of misrepresentation. (c) Diverting other peoples monies coming into the possession of the licensee. (d) Changing from one brokerage to another during the term of a listing
Changing from one brokerage to another during the term of a listing
The exemptions give no protection against debts secured by the property or for unpaid: (a) Interest (b) Child support
Child support
Condominium development and ownership is governed by the: (a) Utah Uniform Land Sales Resort Act (b) Timeshare and Camp Resort Act (c) Condominuim Ownership Act
Condominuim Ownership Act
The sales office and the property management office can have different names, but agents must be assigned to one office or the other. (a) True (b) False
True
Trust accounts are designed for other peoples money. (a) True (b) False
True
With regards to Stock Cooperatives, taxes are paid by the: (a) Co-op (b) Lender (c) Stock owner
Co-op
In the case of a dispute over the earnest money, where both buyer and seller are claiming it, which of the following is NOT required of the broker holding the earnest money? (a) If the REPC was marked "SHALL," regarding mediation, within 15 days, remind the parties they agreed to seek mediation. (b) Compare the dispute to the agreement and distribute the funds to the rightful party. (c) Within 15 days of knowledge of the dispute, notify the parties of the dispute and advise them of their next step. (d) If the REPC was marked "MAY," invite the parties to meet and see if the dispute can be resolved.
Compare the dispute to the agreement and distribute the funds to the rightful party. Explanation: The "right" answer, of course, is a "wrong" answer. It would require the broker to act as judge and jury. The other three answers are correct procedures.
Regarding the Utah Real Estate Recovery Fund Act: To get money from the fund, wronged persons must take the licensee to __________ and win. (a) Lunch (b) Court (c) Their broker
Court
A sales agent and principal broker disagree on the split of a commission. If they cannot settle it, who would resolve the matter? (a) Real Estate Division (b) Board of Realtors (c) Courts
Courts
Typically, earnest money checks would be written in the name of the trust account. (a) True (b) False
True
What are the requirements for continuing education in the state of Utah? (a) Eighteen hours every two years, including at least 9 hours of core courses. (b) Six hours of core classes every year. (c) If one has been inactive for 4 1/2 years, upon reactivating, 24 hours of CE will be required. (d) Twelve hours of any approved subject plus the State's core course.
Eighteen hours every two years, including at least 9 hours of core courses.
Who is required to attend the closing? (a) Principal broker (b) Principal broker's authorized representative (c) Either the principal broker or the principal broker's authorized representative
Either the principal broker or the principal broker's authorized representative
Water rights are real property and pass with the deed unless there is a(n) _________ in the deed. (a) Exclusion (b) Highlight (c) Falsification
Exclusion
A cubic foot of water flowing past a specific point in one second of time is called the beneficial right. (a) True (b) False
False
A referral fee can be paid to a non-licensee if it is no more than $20 and the referral was not solicited. (a) True (b) False
False
After passing the State exam, the candidate must pay for the license within 60 days and either make the license active or inactive. (a) True (b) False
False
An agent can make changes in a purchase contract based on the instructions from the client given over the phone. (a) True (b) False
False
Audits are ordered by the real estate division and are to be done by a certified public accountant at the expense of the sales agent. (a) True (b) False
False
Bookkeepers in a property management office must have a real estate license. (a) True (b) False
False
Closing documents can be filled out only by a principal broker or sales agent. (a) True (b) False
False
If a broker has both a real estate and a property management office, he must license his sales agents with both offices. (a) True (b) False
False
Owners do not have to pay a condominium fee. (a) True (b) False
False
Property managers are never required to have a real estate license. (a) True (b) False
False
The Commission decides which questions will be on the State exam. (a) True (b) False
False
The Director is a member of the commission. (a) True (b) False
False
The Real Estate Commission CANNOT suspend a license (a) True (b) False
False
The Real Estate Commission can fine the licensee up to $1,000 per violation. (a) True (b) False
False
The Real Estate Commission can imprison the licensee in severe cases, no more than 2 years. (a) True (b) False
False
The Real Estate Commission can order the licensee to do up to 40 hours of public service. (a) True (b) False
False
The only remedy for enforcement of a mechanic's lien is a lien waiver. (a) True (b) False
False
The owner of a condominium holds fee simple ownership of the furniture of his unit, and has an undivided ownership, along with the other owners, of the common area. (a) True (b) False
False
The penalty for failing to respond to a complaint is an additional complaint. (a) True (b) False
False
When the work is done and payment is made, the owner should request a lien release. (a) True (b) False
False
With regards to Condominiums, the limitations of ownership are revealed in the C C and R's, which the buyer must receive after the property is purchased. (a) True (b) False
False
The wall license is placed in the principal broker's: (a) File (b) Wall (c) Car (d) Pocket
File
An individual who arranges with someone for labor and materials is a: (a) General contractor (b) Unlicensed laborer (c) Subcontractor
General contractor
To obtain a sales agent license, the sales agent candidate must do all of the following EXCEPT: (a) Be at least 18 years old. (b) Complete a real estate licensing course of 120 hours. (c) Pass the Utah State Exam with a score of at least 70%. (d) Have an Associates Degree
Have an Associates Degree
The statutory requirement for becoming a broker is: (a) Be a member of the Board of Realtors. (b) Have three years' full-time experience as a real estate licensee or its equivalent. (c) Have five years' experience as a real estate salesagent. (d) Post $1,000 bond.
Have three years' full-time experience as a real estate licensee or its equivalent
When obtaining a non-resident sales agent license, the candidates must sign the legal form called Irrevocable Consent. (a) True (b) False
True
If two contracts are created, one to deceive the lender (double contract), that is: (a) Legal (b) Illegal
Illegal
A builder, in selling new homes, requires a non-refundable deposit (which will be used for construction), in addition to the earnest money deposit. This: (a) can be done only if the non-refundable deposit does not exceed the allowable limit. (b) can be done if the funds are held in the trust account for a specified period of time. (c) is acceptable as long as the non-refundability is spelled out and agreed to in writing by the buyer. (d) is not allowed under the law, as deposits must be refundable if contingencies are not met.
Is acceptable as long as the non-refundability is spelled out and agreed to in writing by the buyer.
Mechanic's liens can only be perfected upon default. Default occurs when: Work _________ and payment not received. (a) Begins (b) Is completed
Is completed
When the Division thinks a licensee is violating Utah Real Estate Law, before the hearing they may: (a) Freeze the trust account to protect against embezzlement. (b) Issue a "writ of attachment." (c) Suspend the license of the individual involved in the questionable activities. (d) Issue a "Cease and Desist Order."
Issue a "Cease and Desist Order." Explanation: They do not have the authority to freeze an account and tie up the public's money. They could issue a "Cease and Desist" order to the broker.
Why is a real estate license not sufficient when selling investment opportunities in a large real estate project that will involve multi-use properties? (a) Because a licensee cannot sell a partial interest in a property. (b) It is a security and needs a securities license. (c) Because of the multiple zoning which would be required. (d) The multiple uses for the property require a specialized license.
It is a security and needs a securities license
The Real Estate Recovery Fund had to pay money on a real estate licensee. What happens to the agents license? (a) It is automatically suspended. (b) He is charged a fine, but the license is kept in force. (c) It is placed on probation. (d) It is automatically revoked.
It is automatically revoked
According to the rules, the broker must furnish a statement of account showing the current status of the transaction when: (a) it is a transaction that will take more than 120 days to conclude. (b) there is a concern or dispute by one party, doubting that the other party is performing as required. (c) thirty days have passed since the offer was accepted. (d) it is demanded by either party, or 30 days have passed from acceptance.
It is demanded by either party, or 30 days have passed from acceptance. Explanation: The broker can certainly do this as a standard procedure, but is only required to do it upon request.
A person owns a condo and does not pay the taxes. What happens? (a) Nothing (b) It jeopardizes the owner's position (c) The condo association gets sued (d) The condo complex can be repossessed
It jeopardizes the owner's position
K offers an unlicensed friend $50 for helping K sell a $50,000 home. This is inappropriate because: (a) of the Statute of Frauds. (b) they are personal friends. (c) it is not enough compensation. (d) it violates real estate licensing laws.
It violates real estate licensing laws
The buyer wants J, the agent, to write up the offer as a seller carry back for the financing of the sale. What statement is applicable to this situation? (a) J should request the loan documents from the lender, review them, then give an opinion about the legality of this approach. (b) J must disclose to both parties there might be a "due on sale" clause and its effect. (c) It is illegal, and if J values his/her license, J won't do it. (d) J. should request an estoppel certificate for disclosure to the buyer.
J must disclose to both parties there might be a "due on sale" clause and its effect. Explanation: Memorize this standard and be sure you do it, always. You do not have to review the loan and give an opinion. Estoppel certificate is a document from the lender giving all pertinent details of the terms of the loan.
Assuming a REPC is accepted on January 25th and a check for $1,000 earnest money is given the same day, what is the latest it can be deposited into the Brokerage Trust Account? (a) February 1 (b) January 26 (c) January 28 (d) January 29
January 29 Explanation: According to the REPC, the Broker has 4 calendar days to deposit the earnest money. Unless it is specified in an addendum to do something different, the 4 calendar rule must apply.
According to the Utah Exemption Act (The Homestead Act), exemptions are granted for debts not secured by the property. Which of the following would NOT apply? (a) Mortgages (b) Business debts (c) Doctor bills (d) Credit cards
Mortgages
An unlicensed personal assistant can do all of the following EXCEPT: (a) Deliver documents (b) Make appointments when the buyer or seller initiated the contact (c) Place signs on property (d) Make cold calls to generate business
Make cold calls to generate business
What best describes the responsibility of the listing licensee regarding the details about the property for sale? (a) Thoroughly determine inside measurements for each room. (b) Make reasonable efforts to verify the accuracy of the listing content. (c) Have the seller sign a Limited Agency Agreement when taking the listing. (d) Personally fill out the Seller's Property Disclosure based on information given by the seller.
Make reasonable efforts to verify the accuracy of the listing content
Which of the following changes would NOT be required to be reported to the R. E. Division within ten days? (a) A personal or brokerage bankruptcy (b) The personal address change of a licensee (c) A change of name, such as a woman who got married (d) Marital status change
Marital status change
Which of the following activities would require the person to have a real estate license for property management activities? (a) Mary is collecting rents for her widowed mother who just pays her a token $25. (b) J is a secretary of a property management company and occasionally shows an empty apartment. (c) Q is renting empty units, collecting rents, and handling maintenance in return for reduced rent. (d) L collects rents from the triplex next door for his good friend and there is no compensation.
Mary is collecting rents for her widowed mother who just pays her a token $25. Explanation: Remember the guideline: Someone assisting another in a real estate transaction and receiving compensation for it (no matter how small) needs a license. Memorizing the exceptions to needing a property management license will also be helpful for the test.
Filing a mechanic's lien for an amount greater than the debt owed is considered to be a: (a) Nothing, as it's not illegal. (b) Felony (c) Misdemeanor
Misdemeanor
Which of the following is NOT one of the three types of real estate licenses in Utah. They are: (a) Sales Agent (b) Mortgage Lender (c) Principal Broker (d) Associate Broker
Mortgage Lender
When two states agree to allow each other to give non-residence licenses, they are said to be practicing reciprocity. (a) True (b) False
True
If there is no agreement to the contrary, can earnest money be used to complete construction? (a) Yes (b) No
No
If there is no agreement, can large amounts of money be used as a non-refundable deposit? (a) Yes (b) No
No
What is the difference in educational requirements between a principal broker and an associate broker? (a) Associate broker needs 90 hours, principal broker needs 130 hours. (b) Associate broker needs only three years of experience, principal broker needs 120 hours of education. (c) No difference. (d) Associate broker needs 120 hours, principal broker needs 30 additional hours.
No difference
When obtaining a non-resident sales agent license, The candidates must be sure their _________________ also has a _______________ license. (a) Principal broker, non-residential (b) Associate broker, non-residential (c) Principal broker, residential (d) Associate broker, residential
Principal broker, residential
With regards to Stock Cooperatives, the owner is assigned a unit by means of a propriety lease. (a) True (b) False
True
The term for Utah's water law, which determines who gets to have rights to use and distribution of water, is: (a) Prior appropriation (b) Beneficial use (c) Riparian rights (d) Littoral rights
Prior appropriation
If a person owns a share in a stock cooperative, so they have the right to live in their individual unit undisturbed, what do you call their rights? (a) Proprietary lease (b) Tenancy for years (c) Fee simple defeasible (d) Planned unit development
Proprietary lease
Which of the following is responsible for the content and accuracy of the closing statement? (a) Title Company (b) Principal Broker (c) Selling sales agent (d) Listing sales agent
Principal Broker
An associate broker or sales agent must work under the supervision of a(n): (a) Associate broker (b) Branch broker (c) Principal broker
Principal broker
The difference between an active and inactive license for a sales agent or associate broker is that the licensee has named a: (a) Associate broker (b) Principal broker (c) No difference
Principal broker
Which of the following best describes the Marketable Record Title Act? (a) Provides for the appointment of a mediator in title disputes. (b) Removes liens that are not enforced within the 10 year statute of limitations. (c) Nullifies most liens over forty years old. (d) Allows title records to be sold in list form by the County Recorder.
Nullifies most liens over forty years old
With regards to Condominiums, the taxes on the individual units (air space) and the undivided interest in the common area are considered a parcel and are paid by the _____________________. (a) Owner (b) Renter (c) Homeowner Association (d) Monthly HOA Dues
Owner
The duties of the Real Estate Commissioners include all of the following EXCEPT? (a) Regulating property management. (b) Advising the director. (c) Passing laws relating to the practice of real estate. (d) Making and enforcing rules and regulations.
Passing laws relating to the practice of real estate
An associate broker can do all of the following EXCEPT: (a) Take listings (b) Negotiate leases (c) Prepare closing documents (d) Pay commissions
Pay commissions
Which of the following is NOT a purpose for the Real Estate Recovery Fund? (a) Pay the per diem expense of commissioners (b) Reimburse the public for damages (c) Provide revenue for research (d) Education of licensees
Pay the per diem expense of commissioners Explanation: The correct (wrong) answer does not belong on the list. The other three are the three purposes for the Fund.
If a promissory note is taken as earnest money, it is to be kept in the transaction file and the maker of the note is called the: (a) Payor (b) Payee
Payor
23. A plumber did some work on a home. After waiting a few weeks while the owner kept promising to pay, the plumber decided to place a mechanic's lien against the property. Which of the following would accomplish that? (a) Sue the owner in small claims court. (b) File an unlawful detainer with the court. (c) Perfect a lien at the county recorder's office. (d) File a lis pendens at the county recorder's office
Perfect a lien at the county recorder's office. Explanation: An unlawful detainer pertains to evicting a tenant. A lis pendens is filed when foreclosing under a mortgage.
The licensee keeps the ________________ license in his/her ______________. (a) Wall, desk (b) Pocket, pocket (c) Wall, pocket (d) Pocket, car
Pocket, pocket
A homestead is a person's: (a) Primary residence (b) Secondary residence (c) Only residence
Primary residence
The name of the trust account must contain the words: (a) Real Estate Trust Account (b) Trust Account (c) [brokers name] Trust Account
Real Estate Trust Account
To check on existing water rights, one could look up the records at the: (a) State Engineer's Office (b) Division of Real Estate
State Engineer's Office
With regards to Utah Water Law, the most important principle upon which decisions relative to the distribution of water are made is called beneficial use. (a) True (b) False
True
When payment is made after a mechanic's lien has already been filed, the mechanic must file a ____________ of lien within ______ days. (a) 1020, 8 (b) REPC, 10 (c) Release, 10
Release, 10
The Director prepares a _____________ for the governor and the legislature each year. (a) Report (b) Recommendation for new rules (c) Summarization of disciplinary actions
Report
In writing an offer on a property where no certificate of occupancy has been issued, the agent is to use the REPC for: (a) Residential construction (b) Commercial construction
Residential construction
If money is paid for a licensee from the recovery fund, the license is automatically: (a) Revoked (b) Renewed (c) Inactive
Revoked
Regarding the Utah Real Estate Recovery Fund Act: If a broker's license is revoked, after five years that person may reapply for a: (a) Brokers License (b) Mortgage License (c) Drivers License (d) Sales Agent License
Sales Agent License
Commingling is the opposite of: (a) appurtenant (b) segregation (c) mixing (d) cooperating
Segregation Explanation: Don't think of Fair Housing here. Segregate means to keep separated, and other people's money should be separated from the broker's money.
A promissory note for earnest money should be made out in the name of the: (a) agent who wrote the offer. (b) seller (c) buyer (d) broker
Seller
Shares of water are personal property and, unless specifically noted, are the property of the: (a) Seller (b) Buyer
Seller
A real estate license authorizes a person to be paid for all of the following activities EXCEPT: (a) Sign documents for and in behalf of a buyer or seller (b) Act as a property manager (c) Negotiate the exchange of real estate (d) Arrange for the purchase and/or sale of real estate
Sign documents for and in behalf of a buyer or seller
The Marketable Record Title Act: (a) has been in effect since 1901. (b) simplifies clearing title. (c) is assigned to clear an undisturbed title. (d) protects buyers of lots in subdivisions.
Simplifies clearing title
Another purpose of the Marketable Record Title Act is to __________ and ___________ title searches and transfer of title. (a) Complete, stabilize (b) Simplify, stabilize
Simplify, stabilize
Condominium projects can include all of the following EXCEPT: (a) Commercial, industrial or manufacturing projects (b) Offices (c) Single family homes (d) Stores (e) Multiple family residences
Single family homes
When applying for a water right one would apply to the office of the: (a) Legislature (b) State Engineer (c) Water rights
State Engineer
The owner in a co-op owns personal property in the form of a: (a) Stock certificate (b) Building (c) Title
Stock certificate
The Real Estate Division's representative during the complaint process is: (a) The Commission or an Administrative Law Judge (b) The agent (c) The broker (d) The Director of the Division
The Commission or an Administrative Law Judge
If, upon examination by the Division's representative, gross mismanagement of the records is found, which of the following would NOT be a possibility? (a) The Division could freeze the trust account. (b) If there is an audit, the broker must pay for it. (c) The Division could appoint a receiver. (d) An audit by an independent CPA can be required.
The Division could freeze the trust account
1. If a principal broker dies, and it is a sole proprietorship, what should be done with the records of the company? (a) They must be transferred to the Division. (b) A receiver will be appointed by the Division to handle the records. (c) The Division should be notified as to where the records will be stored. (d) The administrator of the broker's estate must keep the records.
The Division should be notified as to where the records will be stored.
The Licensee's representative during the complaint process is (a) The Commission or an Administrative Law Judge (b) The agent complained against or counsel of that agent (c) The broker of the agent with the complaint (d) The Director of the Division
The agent complained against or counsel of that agent
A timeshare development company wants to hire a licensed real estate agent to sell timeshare interests. Which of the following is true? (a) A special license is needed to market timeshares. (b) The agent must disclose to all purchasers he/she has a license. (c) The agent must register with the R. E. Division (d) Since the agent is licensed, no further action is needed.
The agent must register with the R. E. Division
If a licensee has a complaint filed against him/her by a member of the public, upon receiving notice of the complaint, what is next in the complaint process? (a) The licensee can request a hearing before the commission. (b) The licensee has 30 days to respond to the R. E. Division. (c) The licensee will appear before the commission to respond to the complaint. (d) The licensee must respond in writing within three days.
The licensee has 30 days to respond to the R. E. Division.
A sales agent asks a farmer if he can advertise the farmer's property. The farmer agrees, and they shake hands. The sales agent then places ads in the newspaper. The sales agent's actions are improper because: (a) It violates the Statute of Limitations. (b) Any contract executed by a handshake is not considered valid. (c) The listing must be in writing before the sales agent can advertise. (d) The sales agent's actions were not improper.
The listing must be in writing before the sales agent can advertise
In relation to one's water rights, the term "littoral" applies to which of the following situations? (a) The water table is dangerously high. (b) There is a water canal running through the back yard. (c) Irrigation water is available for non-culinary use. (d) The owner has land with ocean-front access.
The owner has land with ocean-front access
There are two forms of any real estate license. They are: (a) The pocket and wall license (b) The pocket and car license (c) The wall and broker's copy of the license
The pocket and wall license
The Division has the power to subpoena witnesses, books, papers, etc. (a) True (b) False
True
With regards to Water Law, other states adhere to the law of riparian rights. (a) True (b) False
True
If a main office has a branch, the name of the branch must be: (a) The same as the main office (b) Different, but have the same name as the main office incorporated into their new name (c) Something completely different than the main office (d) The name of the broker
The same as the main office
Which of the following statements is correct regarding the necessity of establishing a separate property management company? (a) When the brokerage is handling six property management accounts. (b) There is no such requirement. (c) When the brokerage begins to do property management in addition to sales. (d) When the brokerage has seven property management accounts.
There is no such requirement
If the owner and principal broker of Jones Real Estate Co. decides to open a separate property management company, which does NOT apply? (a) The name can be different from the real estate company. (b) There must first be more than six property management accounts. (c) The broker can manage both companies. (d) It can be called Jones Property Management Company.
There must first be more than six property management accounts Explanation: Again with the number 6! Remember that number only applies to the need to open a separate property management trust account.
Which of the following is true regarding unlicensed real estate assistants? (a) They can sit open houses alone. (b) They can be paid a base salary, plus a percent of closings. (c) They can make phone calls seeking business for the agent. (d) They can be paid a regular salary only.
They can be paid a regular salary only
The Real Estate Commission can fine up to $5,000 for each violation. (a) True (b) False
True
A condominium is a form of ownership rather than a type of building. (a) True (b) False
True
A licensee has an affirmative duty to disclose a possible Due on Sale clause in a loan that will be assumed or part of a wraparound. (a) True (b) False
True
A property manager acts as a general agent of the owner. (a) True (b) False
True
According to the Utah Exemption Act (The Homestead Act), exemption amounts for dependents is $0 and for Spouse or Head of Household is $30,000. (a) True (b) False
True
Before working for a broker or changing brokers, the Real Estate Division must be notified as required. (a) True (b) False
True
Blind ads are: •A newspaper ad without the name of the company. •A "For Sale" sign or ad on an unlisted property (FSBO) by a licensee that doesn't state owner/broker or owner/agent. (a) True (b) False
True
If an owner fails to pay a condominium fee in a timely manner, the Homeowners' Association can place a lien on the unit. (a) True (b) False
True
If brokers place more than the allowed amount of their own money in the trust account, they are guilty of commingling. (a) True (b) False
True
In a guaranteed sales program, all advertising must disclose costs and conditions of the plan. (a) True (b) False
True
Individuals who are owners or regular salaried employees of an owner, and who do not provide property management service for more than one employer, do not need to have a real estate license. (a) True (b) False
True
It is legal for a principal broker to have both a real estate office and a property management office at the same time. (a) True (b) False
True
Mechanic's liens can be placed by any persons who have integrated their services or materials into the property. (a) True (b) False
True
Mechanics lien's cannot be placed on government property. (a) True (b) False
True
People who work as secretaries in a property management office do not need to have a license. (a) True (b) False
True
Property managers who are required to have a license must work under the supervision of a principal broker. (a) True (b) False
True
Regarding the Utah Real Estate Recovery Fund Act: If the division is paid back, with interest, the licensee can reapply for a license. (a) True (b) False
True
Regarding the Utah Real Estate Recovery Fund Act: The source of funds include a portion of licensing fees and fines from disciplinary actions. (a) True (b) False
True
Regarding the complaint process, the legal order the Division can issue is a Cease and Desist. (a) True (b) False
True
Resident property managers do not need a real estate license. (a) True (b) False
True
The Commission makes rules and regulations. (a) True (b) False
True
The Division can investigate a licensee. (a) True (b) False
True
The Division has the power to initiate suit against a licensee in the courts. (a) True (b) False
True
There are three categories of people who can place mechanic's liens. Choose the answer that has them in order of first through third priority. (a) Subcontractors and material suppliers, Unlicensed laborers, General contractors (b) Subcontractors and material suppliers, General contractors, Unlicensed laborers (c) Unlicensed laborers, General contractors, Subcontractors and material suppliers (d) Unlicensed laborers, Subcontractors and material suppliers, General contractors
Unlicensed laborers, Subcontractors and material suppliers, General contractors
Which of the following best describes the limitations on payments from the Division of Real Estate's Recovery Fund? (a) Up to $10,000 per violation, $50,000 per licensee (b) Up to $20,000 per violation, $60,000 per licensee (c) $45,000 per violation (d) Up to $15,000 per violation, $50,000 per licensee
Up to $15,000 per violation, $50,000 per licensee
18. Which of the following is NOT a State Approved Form: (a) Utah Standard Lease Form (b) Utah Uniform Real Estate Contract (UREC) (c) AITD or All-Inclusive Trust Deed (d) Addendum
Utah Standard Lease Form Explanation: Remember that there are no state approved forms for agency agreements or for lease agreements. There are only state approved forms for: 1) purchasing property and 2) seller financing.
The depth of subterranean water is referred to as the: (a) Water table (b) Depth gauge
Water table
The REPC for Residential Construction must be used: (a) When it is not part of a subdivision, but is a "spec" home. (b) When built by a licensed contractor. (c) When a Certificate of Occupancy has not yet been issued. (d) If the property has never been lived in previously
When a Certificate of Occupancy has not yet been issued
Under the Division Rules, which of the following is NOT correct? (a) A principal broker cannot keep part of the earnest money unless both parties agree. (b) Net listings shall not be taken by a licensee. (c) Licensees shall keep their broker informed regarding their transactions. (d) When requested by the client, the agent must give them copies of documents from both sides of the transaction.
When requested by the client, the agent must give them copies of documents from both sides of the transaction. Explanation: Did you get caught by the "NOT?" We're looking for a statement that all by itself (not as an answer to this question) is not a true statement. It relates to the duty of confidentiality as an agent to one of the parties.
It is June 18, and your license expired May 30. Which is NOT true? (a) You are now an inactive licensee. (b) You can renew by paying extra during June. (c) You can comply with additional requirements and renew till October 31. (d) You are out of luck! Start over.
You are out of luck! Start over
The Commission is responsible for the ___________________ of the State exam. (a) content (b) weighting of questions
content
